INDITEX GROUP

Operations Management Assignment: Inditex Group



Operations Management Assignment: Inditex Group

Introduction

During 70's and 80's the fashion trends were on peak and there were rapid changes in the world of fashion. This resulted in major problems for the firms in fashion industry as it was very difficult to deal with changes according to latest trends of that time. With the traditional approach of long duration of manufacturing process, it became very difficult to deal with the changes in latest fashion trends. Another problem was with the ramp walks and fashions shows that presented new and stylish dresses to attract people and designers both.

Customers wanted those dresses on urgent basis and designers needed time for its manufacturing. It was another problem faced by organizations. Inditex identified these problems and they worked on this issue to provide solution for the customers. This resulted in providing an edge to Inditex as compared to other retail businesses and fashions stores.

Who are Inditex?

Industria de Diseño Textil (Inditex) is one of the leading multinational textile companies of Spain. It owns a number of different brands: Oysho, Massimo Dutti, Bershka, Pull and Bear, Stradivarius, Zara, and Uterque. Zara is most recognized clothing store and fashion chain of Inditex Group, which operates its business worldwide. The Inditex is more famous for its fashion designs of all range. The clothes are specially designed by the Spanish designers according to the latest fashion trends of a region. Inditex operates over 4700 shops in 76 countries (www.inditex.com). Inditex is well recognized in America, Asia, and Europe. Zara is most recognized brands in UK, apart from Zara, Massimo Dutti is also well known in London and Manchester.

Brief history

Inditex Groups owned different enterprises especially the largest business operations of this group is related to textile and clothing. Amancio Ortega Gaona, a Spanish rich business man and a shareholder of Inditex group entered in the retail business with its first outlet in La Cornua in 1973, with the brand name Zara. He started his career as a delivery boy at shirt maker's shop at the age of 13 and then kept dealing with fabrics and customers, which led him to become a manager of the shop. He used all his experience by starting his own work and designing to supply to different shops. This resulted in providing him information about this business and he became successful in opening his own business of Inditex. Since its establishment the modern trend of “instant fashion” resulted in success of the organization. There were many factors that resulted in brining positive change and success for the organization. Inditex and Zara brought various changes in their operational strategies against traditional methods, and this resulted in major success of the organization.

Structure

The structure of Inditex Groups is based on its different supply chain stores. These retail supply chain stores have its subsidiaries in Spain and many other countries including United Kingdom, United States, China, Japan and many other countries. Many subsidies of Inditex group were involved in performing different tasks ...